Exhibit 99(d)(6)

                    FirstCity Waives Minimum Tender Condition
                       on Special Preferred Exchange Offer

      Houston, July 25, 1997 . . . FirstCity Financial Corporation announced

that its exchange offer currently outstanding to holders of its Special

Preferred Stock has been amended to waive the minimum tender condition. The

obligation of the company to consummate the exchange offer was originally

conditioned upon a minimum of 1,500,000 shares being tendered. The offer, as

amended, now has no minimum tender condition.

      As of July 25, 1997 997,000 shares have been tendered pursuant to the

offer.

      To allow for the required mailing of the amendment to holders of the

Special Preferred, the expiration of the offer has been extended to 5:00 p.m.

New York City time, on Monday, August 4, 1997. 


      Terms of the exchange offer allow a holder of outstanding Special

Preferred stock to exchange shares of such stock for an equal number of

FirstCity's redeemable New Preferred stock. As with the existing Special

Preferred, the redemption value of the New Preferred stock will be $21. The New

Preferred stock will have an annual dividend rate of $3.15 per share, payable

quarterly, until September 30, 1998. Beginning October 1, 1998 the dividend rate

will adjust downward to $2.10 per year or 10% of the New Preferred redemption

value. The New Preferred will be callable on or after September 30, 2003 and is

to be redeemed on September 30, 2005. Other terms and conditions of the exchange

offer which are outlined in the offering circular dated June 18, 1997 remain

unchanged.


      The exchange is generally structured to be a tax free exchange and the New

Preferred stock is expected to qualify for dividend received exclusions under

the current IRS code, subject to applicable limitations.


      James Hawkins, Chairman of FirstCity noted, "We are very enthusiastic

about this offer to our current Special Preferred shareholders. The preferred

they now hold is to be redeemed in September of 1998, at which point the holders

may have a tax consequence from the redemption of the security. Exchanging for

the new preferred allows a holder to defer any tax recognition and provides the

holder with a new preferred at very competitive dividend rates. We believe this

is a very attractive offer for our preferred holders. With the timing of this

offer falling during summer vacations as well as the


relatively short duration of the initial exchange period, we determined that an

extension is necessary to assure that all holders have ample time to consider

the exchange."


      Holders who would like additional information regarding the exchange offer

should contact Suzy Taylor - Vice President of Investor Relations for FirstCity

at (713) 652-1810.


      FirstCity Financial Corporation is a diversified financial services

company engaged in portfolio acquisition, consumer lending, mortgage banking and

asset servicing through approximately 50 offices in the US and with affiliate

organizations in Europe and Mexico. Its common (FCFC) and special preferred

(FCFCP) stocks are listed on the NASDAQ National Market System.